9th International Micro Insurance Conference 12 – 14 November 2013, Jakarta

Dana Gempa – Earthquake Fund

By Teddy Hailamsah

Asuransi Central Asia

Advisor of Asean Insurance Council

Content

1. Natural disaster micro insurance in Indonesia 2. Index or non-index base? 3. Terms and conditions of Dana Gempa 4. Registration and claim process 5. Distribution channel\ 6. Fact finding

INFO KEBAKARAN

The Development of Natural Disaster’s Micro Insurance in Indonesia

Indonesian Law No. 24 / 2007 – Chapter VIII – Part 1. Funding – Article 60, verse 2 = “Government and local government encourage public’s participation in the provision of fund from the public”

The government will facilitate the insurance industry to educate the people about the importance of micro insurance and to educate the society that they have to optimize their capability to prepare themselves from natural disaster, instead of just waiting for government’s donation.

Index or Non-Index?

ACA has studied earthquake micro insurance from 2011. After a long discussion and study, the product – namely Dana Gempa – finally was approved by the regulator on 2012.

Dana Gempa will pay the lump sum payment to the insured person should the building insured is damage due to earthquake, regardless of the Richter Scale or the level of damage.

Will index-based work for the poor in Indonesia?

Index or Non-Index?

Applying index-based means =

Insurance company will only pay when the accident match with the parameter, regardless the level of damage suffered by the insured person.

Insurance will not pay any sum if the accident does not match with the parameter, even though the insured person has already suffered because of the accident this clause will not be accepted by the poor. Therefore, Dana Gempa is set up based on an emergency fund scheme, not an index-based..

Terms and Conditions of Dana Gempa

Building = all class of constructions, all occupations, all over Indonesia

Benefit = USD 200 for each voucher if the insured building is damage due to EQ, regardless of the Richter scale or the level of damage

Gross premium = USD 2 for each voucher.

One building can be covered up to 5 vouchers or max USD 1,000 benefit.

Registration = via text message (SMS activation)

Claim Process of Dana Gempa

Claim report by text messaging (SMS Claim).

However, since the main purpose of Dana Gempa is providing Emergency Cash Plan, then every news about EQ that is raised by BMKG or media, we assume this is as a claim report from our customer.

Claim document = only one, i.e. copy of ID card or a notice from the local sub-district that the victim is the owner of the damage building.

Policy Renewal

Automatic text messaging (SMS Claim).will be sent by ACA’s system to the insured’s mobile phone and ask the insured to buy another voucher at the nearest distribution channel

Distribution Channels

Branch offices – scratch card

Retail store / convenience store = Indomaret with 9.000 outlets all over Indonesia – electronic voucher

PT. Pos Indonesia

Distribution Channels

Fliers

Scratch card – front

Scratch card - back

Typhoon Haiyan: the international community active in disaster relief

Four days after Typhoon Haiyan in the central Philippines, the mobilization of the international community steps up to help the victims.

The damage is considerable. The Philippines president announce the death toll could rise up from 2,000 to 2.500 deaths in Tacloban City.

The United States has ordered the aircraft carrier George Washington to take the lead in the archipelago. The United Kingdom, Canada and France have also announced the dispatch of resources on site.

Typhoon Haiyan: the international community active in disaster relief

Given the extent of the damage, the Philippine government has declared a state of national disaster.

For their part, the United Nations launched an appeal for donations to the tune of 225 million euros.

Terima Kasih Thank You